This Type of Savings Account Performed Better Than the Stock Market Last Year
At some point, your dad has probably lectured you about how your money is wasting its potential if it’s not in the stock market…????It’s what dads do.
But in 2018, high-yield savings accounts actually gave people more bang for their buck than the stock market.????To be clear, it’s not just any old savings account… ????If you don’t know the difference, according to bankrate.com, the average interest rate for a savings account is .09 percent annual percentage yield.????But according to CNBC, with a higher-yielding account from an online bank, you could be sitting pretty with an APY of at least 2 percent.????Greg McBride, chief financial analyst at Bankrate.com, told CNBC: “If you’re not keeping pace with inflation, you are losing buying power; over time, that’s just as damaging as a loss of principal????That said, you have to read the fine print.
High-interest savings accounts with great APYs could have some benchmarks you’re not financially prepared for…????For instance, CIT has an offer for a 2.45 percent APY — but you either have to have 25 grand or more in the account or deposit 100 dollars a month to get that rate.????And even if you decide that this type of savings account is right for you — don’t count the stock market out forever…????Last year was the first year it was beat out by high-yield savings accounts in over 10 years.
Retirement is about a lot more than just savings. Having the right plan for investing and budgeting the money you saved is arguably even more important. Dirk Cotton, author of the blog The Retirement..